Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $73.3 million, with adjusted EBITDA of $25.8 million and an adjusted EBITDA margin of 35.2%, an increase of 40 basis points compared to Q3 2024 [17][19] - Revenue excluding marketing funds was $55.1 million, a decrease of 5.6% year-over-year, primarily due to a decline in organic revenue of 5.4% and adverse foreign currency movements of 0.2% [17][18] - Adjusted diluted EPS was $0.37, reflecting the company's profitability despite a challenging housing market [17] Business Line Data and Key Metrics Changes - The agent count reached over 147,500, marking a record high, with the U.S. agent count showing the best performance in three years [6][4] - The Aspire program has seen approximately 1,500 agents benefiting, contributing to higher retention rates and recruitment of newer agents [9][38] - The RE/MAX Marketing as a Service platform is expected to generate a seven-digit revenue contribution, indicating strong engagement and effectiveness [11][27] Market Data and Key Metrics Changes - Inventory in the housing market increased by 20% year-over-year, marking the 21st consecutive month of growth [5] - New listings rebounded in September, growing 4.5% over August, which is seen as a positive sign for transaction activity [5] - Canadian agent count saw a slight year-over-year decline but modest sequential growth, indicating resilience in a challenging market [8] Company Strategy and Development Direction - The company is focused on enhancing its value proposition through innovation and operational excellence, aiming to drive profitability and margin performance [4][6] - RE/MAX is strategically reinvesting in the business while evaluating opportunities for share repurchases, indicating a shift towards returning capital to shareholders [19][57] - The introduction of new economic models like Aspire, Ascend, and Appreciate aims to attract a diverse range of agents and improve retention [39][40] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term potential of their initiatives despite the current housing market challenges [12][20] - The company is tightening its revenue and adjusted EBITDA guidance for the full year 2025, reflecting a pragmatic approach to the market conditions [20] - Management highlighted the importance of operational efficiencies and the cash-generative nature of the business, with a total leverage ratio now below 3.5 times [19][57] Other Important Information - The company is expanding its marketing services and leveraging AI to enhance customer experience and operational efficiency [10][14] - New leadership appointments, including a President of Mortgage Services, are expected to drive growth in the mortgage business [12][13] Q&A Session Summary Question: Can you provide more detail on the expected incremental revenue from the marketing and Aspire programs in 2026? - Management indicated that the RE/MAX Marketing as a Service platform is showing strong engagement and is expected to contribute significantly to revenue in 2026, with a margin profile differing from the core business [25][28] Question: What are the implications of M&A activity in the sector on recruitment rates? - Management noted that ongoing consolidation in the market presents opportunities for RE/MAX, with increased inbound interest from potential franchisees [31][33] Question: How are the Aspire, Ascend, and Appreciate models being received by franchisees? - The models are resonating well with the network, with Aspire showing higher retention rates and incremental recruitment of newer agents [38][39] Question: What is the outlook for Motto and its profitability? - Management is optimistic about the mortgage opportunity and is exploring changes to the business model to enhance profitability, though specifics will be shared later [46][48] Question: Will there be share buybacks by year-end? - With the total leverage ratio now below 3.5 times, management is considering share repurchases as an attractive use of capital [19][57]

Financial Performance - RE/MAX Holdings' revenue for Q3 2025 was $73.3 million, a decrease of $5.2 million or 6.7%, compared to $78.5 million in Q3 2024[6, 22] - Adjusted EBITDA for Q3 2025 was $25.8 million, down 5.6% compared to Q3 2024[6, 27] - Adjusted EBITDA margin increased by 40 basis points to 35.2% in Q3 2025[6, 27] - Adjusted Diluted EPS was $0.37[6] Agent Network - Total agent count increased 1.4% year-over-year to 147,547 agents as of September 30, 2025[6, 9] - Agent count in the U S and Canada combined decreased 5.1% to 74,198 agents[6] - Agents outside the U S and Canada increased 9.0% (+6,067 agents)[8] - Agents in Canada decreased 1.5% (-373 Agents)[8] - Agents in the U S decreased 6.9% (-3,630 Agents)[8] Expenses - Selling, operating, and administrative expenses decreased by $3.5 million, or 9.7%, to $32.5 million in Q3 2025, representing 58.9% of Revenue excluding Marketing Funds[23, 24] Outlook - For Q4 2025, the company expects revenue between $69.5 million and $73.5 million and Adjusted EBITDA between $19.0 million and $23.0 million[28] - For full year 2025, the company expects revenue between $290.0 million and $294.0 million and Adjusted EBITDA between $90.0 million and $94.0 million[28]

Core Insights - RE/MAX reported a revenue of $73.25 million for the quarter ended September 2025, reflecting a decrease of 6.7% year-over-year, while EPS was $0.37, down from $0.38 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $73.14 million by 0.15%, and the EPS surpassed the consensus estimate of $0.36 by 2.78% [1] Revenue Breakdown - Marketing Funds fees amounted to $18.14 million, slightly above the average estimate of $18.05 million, but down 9.7% year-over-year [4] - Continuing franchise fees were reported at $27.45 million, below the estimated $29.2 million, representing a decline of 10.9% compared to the previous year [4] - Franchise sales and other revenue reached $5.14 million, exceeding the average estimate of $4.25 million, with a year-over-year increase of 9.5% [4] - Broker fees totaled $14.9 million, surpassing the estimated $13.89 million, with a minimal decline of 0.1% year-over-year [4] - Annual dues were reported at $7.62 million, slightly below the average estimate of $7.81 million, reflecting a year-over-year decrease of 4.4% [4] Stock Performance - Over the past month, RE/MAX shares have returned -11.3%, contrasting with a +3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - RE/MAX reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.38 per share a year ago, representing an earnings surprise of +2.78% [1] - The company posted revenues of $73.25 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.15%, but down from $78.48 million year-over-year [2] - RE/MAX has outperformed consensus EPS estimates in all four of the last quarters, while it has only topped revenue estimates once in the same period [2] Earnings Outlook - The future performance of RE/MAX shares will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $72.05 million, and for the current fiscal year, it is $1.29 on revenues of $293.09 million [7] Industry Context - The Real Estate - Operations industry, to which RE/MAX belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact RE/MAX's stock performance [5]

Financial Performance - Total revenue for the three months ended September 30, 2025, was $73.3 million, a decrease of 6.7% from the prior year[117]. - Revenue excluding Marketing Funds decreased 5.6% to $55.1 million, driven by negative organic revenue growth of 5.4% and adverse foreign currency movements of 0.2%[117]. - Net income attributable to RE/MAX Holdings, Inc. was $4.0 million, compared to $1.0 million in the prior year[117]. - Total revenue for the three months ended September 30, 2025, was $73,247,000, a decrease of $5,231,000 or 6.7% compared to $78,478,000 in 2024[139]. - Revenue from Continuing franchise fees decreased by $3,353,000 or 10.9% to $27,445,000, primarily due to a reduction in U.S. agent count[133]. - Revenue excluding Marketing Funds fees was $55,105,000, down $3,275,000 or 5.6% from $58,380,000, driven by a decline in organic revenue of 5.4%[139]. - Total revenue for the nine months ended September 30, 2025, was $220,464,000, a decrease of $14,754,000 or 6.3% compared to $235,218,000 in 2024[149]. - Revenue from Franchise sales and other revenue decreased by $1,648,000 or 9.1% to $16,512,000, primarily due to a reduction in Franchise sales revenue[153]. - Revenue excluding Marketing Funds for the nine months ended September 30, 2025, was $165,185,000, down $9,702,000 or 5.5% from $174,887,000[154]. Operating Expenses - Total operating expenses increased by $8,333,000 or 13.2% to $54,934,000, representing 75.0% of total revenue[140]. - Personnel expenses within selling, operating, and administrative expenses decreased by $4,905,000 or 21.0% to $18,491,000[141]. - Total operating expenses for the nine months ended September 30, 2025, were $182,739,000, a decrease of $16,569,000 or 8.3% compared to $199,308,000 in 2024[157]. - Selling, operating, and administrative expenses decreased to $109,369,000, down $7,119,000 or 6.1% from $116,488,000 in the prior year[158]. - Personnel expenses decreased by $6,394,000 or 9.0% to $65,031,000, primarily due to increased costs charged to Marketing Funds and lower employee compensation[158]. - Total other expenses, net, decreased to $20,979,000, down $4,450,000 or 17.5% from $25,429,000 in 2024[162]. EBITDA and Income - Adjusted EBITDA decreased 5.6% to $25.8 million, with an Adjusted EBITDA margin of 35.2%, an increase of 40 basis points from the prior year[123]. - Adjusted EBITDA for the three months ended September 30, 2025, was $25.8 million, a decrease of $1.5 million from the prior year period[148]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $71,321,000, a decrease of $3,038,000 or 4.1% from $74,359,000 in 2024[167]. Cash Flow and Liquidity - Cash provided by operating activities decreased to $27.96 million for the nine months ended September 30, 2025, compared to $42.87 million for the same period in 2024[190]. - The company’s liquidity position is affected by changes in its agent and franchise base and conditions in the real estate and mortgage markets[177]. - The company’s cash flows are primarily related to the timing of cash receipts of revenues and payments of selling, operating, and administrative expenses[179]. - As of September 30, 2025, the company had $440.5 million in term loans outstanding and no revolving loans under its Senior Secured Credit Facility[189]. - The Senior Secured Credit Facility includes a $460 million term loan maturing on July 21, 2028, and a $50 million revolving loan facility[181]. - The interest rate on the Senior Secured Credit Facility was 6.8% as of September 30, 2025, with a potential additional annual interest expense of $1.1 million for each hypothetical 0.25% increase[210]. Programs and Initiatives - The Aspire program was launched to help brokerages attract new agents, with a fee structure that caps payments at $5,000 annually[119]. - The Ascend program introduced a 45% reduction in monthly fixed fees, allowing for greater cash flow flexibility for franchisees[121]. - The Appreciate program replaces the existing retirement plan for eligible agents, featuring a $100 transaction fee and reduced annual dues[124]. - The company announced the launch of Marketing as a Service (MaaS), a data-driven platform to enhance marketing efforts for affiliates[126]. Shareholder Returns and Dividends - The company suspended its quarterly dividend in Q4 2023 and did not approve any dividends in the first three quarters of 2025 and 2024[198]. - The company has a share repurchase program authorized for up to $100 million, with $62.5 million remaining available as of September 30, 2025[199]. Other Financial Metrics - Bad debt expense for the nine months ended September 30, 2025, was 1.0% of revenue, compared to 0.4% for the same period in 2024[208]. - A hypothetical 5% strengthening of the U.S. dollar against the Canadian dollar would have resulted in a decrease of approximately $1.3 million in operating income for the nine months ended September 30, 2025[212]. - The effective income tax rate for the nine months ended September 30, 2025, was impacted by foreign taxes on overseas income and valuation allowances related to U.S. foreign tax credits[164]. - The company recorded a cost recovery of $2.1 million related to a previous settlement during the three months ended September 30, 2025[161]. - For the twelve-month period ending September 30, 2025, the company's consolidated EBITDA was $97.6 million, resulting in a Total Leverage Ratio (TLR) of 3.41:1[185].

Financial Performance - Total revenue for Q3 2025 was $73.3 million, a decrease of 6.7% from $78.5 million in Q3 2024[4] - Revenue excluding Marketing Funds decreased by 5.6% to $55.1 million, driven by a negative 5.4% organic revenue growth and 0.2% adverse foreign currency movements[4][6] - Adjusted EBITDA for Q3 2025 was $25.8 million, down 5.6% from the previous year, with an Adjusted EBITDA margin of 35.2%[4][12] - Net income attributable to RE/MAX Holdings was $4.0 million, compared to $1.0 million in Q3 2024, resulting in GAAP EPS of $0.19[4][10] - Total revenue for Q3 2025 was $73,247,000, a decrease of 6.4% compared to $78,478,000 in Q3 2024[28] - Net income attributable to RE/MAX Holdings, Inc. for Q3 2025 was $3,986,000, compared to $966,000 in Q3 2024, representing a significant increase of 312.4%[28] - The company reported operating income of $18,313,000 for Q3 2025, up from $15,211,000 in Q3 2024, reflecting a growth of 13.8%[28] - The net income for the three months ended September 30, 2025, was $7,462,000, compared to $3,414,000 for the same period in 2024, reflecting a year-over-year increase of 118%[36] Revenue Guidance - For Q4 2025, the company expects revenue in the range of $69.5 million to $73.5 million and Adjusted EBITDA between $19.0 million and $23.0 million[17] - The full year 2025 revenue guidance is now between $290.0 million and $294.0 million, with Adjusted EBITDA expected in the range of $90.0 million to $94.0 million[17] Agent Count and Franchise Operations - Total agent count increased by 1.4% to 147,547 agents, while U.S. and Canada combined agent count decreased by 5.1% to 74,198 agents[4][5] - The total number of open Motto Mortgage franchises decreased by 10.3% to 210 offices[4] - As of September 30, 2025, the total agent count in the U.S. and Canada decreased to 74,198, down from 76,457 in the previous quarter, representing a decline of 3.3%[34] - The agent count remained stable, reflecting the company's commitment to maintaining its franchise network[33] Cash Flow and Assets - Cash and cash equivalents increased to $107,476,000 as of September 30, 2025, compared to $96,619,000 at the end of 2024, marking an increase of 11.9%[30] - The total assets of the company were $582,203,000 as of September 30, 2025, slightly up from $581,594,000 at the end of 2024[30] - The company’s total liabilities decreased to $617,051,000 as of September 30, 2025, down from $639,988,000 at the end of 2024, a reduction of 3.6%[30] - The company’s cash flows from operating activities for the nine months ended September 30, 2025, were $27,955,000, down from $42,867,000 for the same period in 2024, a decrease of 34.8%[32] Adjusted Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $25,768,000, with an adjusted EBITDA margin of 35.2%, compared to $27,290,000 and 34.8% in the same period of 2024[36] - Adjusted net income for the nine months ended September 30, 2025, was $32,698,000, compared to $31,570,000 for the same period in 2024, indicating a growth of 3.6%[41] - The adjusted free cash flow for the nine months ended September 30, 2025, was $25,354,000, down from $35,087,000 in the same period of 2024, a decrease of 27.8%[48] - Unencumbered cash generated for the nine months ended September 30, 2025, was $21,904,000, compared to $31,637,000 in the same period of 2024, reflecting a decline of 30.9%[48] - The total basic pro forma shares outstanding as of September 30, 2025, increased to 32,602,939 from 31,423,393 in the same period of 2024, an increase of 3.8%[45] Strategic Initiatives - The company plans to enhance its technology initiatives and expand its market presence, focusing on innovation and improved customer experience[25] - The company recorded a cost recovery related to a previous settlement during the three months ended September 30, 2025, which positively impacted net income[41] - The company restructured its support services during the nine months ended September 30, 2025, aimed at enhancing overall customer experience[37] Non-GAAP Measures - The Company defines Adjusted EBITDA as EBITDA adjusted for non-cash items and non-recurring charges, providing greater transparency into operating performance[53] - Adjusted EBITDA guidance for future periods is expected to exclude similar charges as in prior quarters, significantly impacting the Company's Adjusted EBITDA[56] - Adjusted net income is calculated by adding non-cash items and other items not useful for assessing operating performance to net income attributable to RE/MAX Holdings[57] - Adjusted basic and diluted earnings per share (Adjusted EPS) are derived from Adjusted net income divided by pro forma weighted average shares[58] - Adjusted free cash flow is calculated as cash flows from operations minus capital expenditures, quantifying cash available for shareholder value enhancement[60] - Adjusted free cash flow after tax and non-dividend distributions provides a meaningful view of cash flow available for opportunities after tax obligations[61] - Unencumbered cash generated is calculated as adjusted free cash flow after tax minus debt principal payments, indicating cash available for strategic opportunities[62] - The Company believes that Adjusted EBITDA and Adjusted EPS are useful measures for evaluating performance relative to competitors and over time[60] - Limitations of Adjusted EBITDA include not reflecting cash requirements for working capital, interest expense, or income tax obligations[55] - The Company emphasizes that these non-GAAP measures should not be considered in isolation from GAAP financial measures[55]

Core Insights - REMAX continues its global expansion with the establishment of REMAX Morocco, enhancing its presence in North Africa [1][4] - The Moroccan real estate market is experiencing rapid growth, driven by upcoming major events and increased international interest [3][5] - REMAX Morocco aims to sell over 100 franchises and recruit over 1,000 real estate sales associates, reflecting confidence in the market's potential [5][6] Company Overview - REMAX Morocco will be headquartered in Casablanca and led by Regional Owners Rachida Khalil and Bilal Dabri, who have extensive experience in business development and operations [2][4] - The REMAX brand has a significant global footprint, with over 145,000 agents in nearly 9,000 offices across more than 110 countries [8] Market Potential - The leadership team sees the 2026 Africa Cup of Nations and the 2030 FIFA World Cup as catalysts for increased investment in Morocco's property market [3][5] - The country's reputation as a top tourist destination is attracting foreign investors, particularly in second homes and rental properties [3][4] Strategic Goals - REMAX Morocco plans to leverage its global network to enhance visibility for buyers and sellers in the local market [6] - The company aims to raise the standards of the Moroccan real estate market by providing modern tools and highly trained agents [6][5]

Core Insights - Inventory levels in the housing market are 20% higher year-over-year, marking the 21st consecutive month of annual growth [1][2] - Home sales in September increased by 8.5% compared to the previous year, although there was a 4.6% decline from August [1][6] - The median sales price in September was $439,000, reflecting a decrease of $6,000 (1.3%) from August but an increase of $9,000 (2.1%) from September 2024 [3][8] Inventory and Sales Trends - Active inventory rose by 20.0% year-over-year across 52 metro areas surveyed [2] - The months' supply of inventory increased to 3.0 months, up from 2.6 in September 2024 and 2.8 in August 2025 [6][13] - New listings saw a 0.9% increase compared to September 2024 and a 4.5% increase from August 2025 [6][7] Pricing Dynamics - Sellers accepted 98% of the asking price in September, down from 99% in August 2025 and September 2024 [3][10] - The average close-to-list price ratio across the 52 metro areas was 98%, indicating homes sold for less than the list price [10][11] - Milwaukee, WI experienced the largest year-over-year increase in median sales price at +11.5% [4][9] Market Performance - Days on market averaged 48 days, which is an increase of one day from August and seven days from September 2024 [6][12] - The markets with the lowest days on market included Manchester, NH at 20 days and Milwaukee, WI at 23 days [5][12] - The highest year-over-year sales increases were observed in Honolulu, HI (+55.2%), Omaha, NE (+20.9%), and Raleigh, NC (+20.3%) [8]

Core Points - RE/MAX Holdings, Inc. will release its financial results for Q3 2025 on October 30, 2025, after market close [1] - A conference call and webcast will be held on October 31, 2025, at 8:30 a.m. Eastern Time for interested parties [1][2] Company Overview - RE/MAX Holdings, Inc. is a leading franchisor in the real estate industry, operating under the REMAX® brand globally and the Motto® Mortgage brand in the U.S. [4] - Founded in 1973, RE/MAX has over 145,000 agents in nearly 9,000 offices across more than 110 countries, making it the largest real estate seller by total residential transaction sides [4] - Motto Mortgage, launched in 2016, is the first national mortgage brokerage franchise brand in the U.S., with over 210 offices in more than 40 states [4]

Core Insights - RE/MAX Holdings, Inc. has announced the hiring of Tom Flanagan as Chief Digital Information Officer, effective immediately [1] Company Overview - RE/MAX Holdings is the parent company of RE/MAX, a leading franchisor in real estate brokerage services [1] - The company also owns Motto Mortgage, the first and only national mortgage brokerage franchise brand in the U.S. [1]